CLAIM #46718 · NVIDIA Corporation (NVDA) · 2023Q2 earnings call · Aug 24, 2022 · due Jan 31, 2023
“We believe that by the end of the year, we’ll be in a good shape going into next year.”
Jensen Huang · CEO
In context
“curious, what’s your sense of utilization of your data center shipments? And what is the risk that there could be a correction in the data center given some of the macro caution expressed by some of the hyperscaler and enterprise customers? Jensen Huang: Thanks, Vivek. The sell-through -- the sell-through, as I mentioned earlier, of GeForce is solid. The end market gaming demand is solid. It’s off the highs, which was really high recently in the beginning of the year. And so, we have -- and because we were building for such a vibrant market, we found ourselves with excess inventory. And so, our strategy is to sell well below -- sell in well below the current sell-through levels in the marketplace to give the channel an opportunity to correct. We’ll do that for a couple of quarters or so. We believe that by the end of the year, we’ll be in a good shape going into next year. And so, I hope that answers your question. But, the important thing is our sell-in rate is far below what is happening in the market for sell-throughs. The sell-through is solid, has increased 70% since pre-COVID. And so, the gaming market is really quite vibrant. On the second question, on data center end markets, we hear fairly broadly that GPU supply is in shortage in the cloud. We hear quite broadly that demand for GPU rentals far exceeds current supply. And it’s fairly sensible to us, partly because the number of use cases for GPUs in the cloud has grown quite a bit. If you look at one particular segment in just managing -- collecting data and managing the data of the AV fleet and using that data to train AI models, using that data to reconstruct HD maps, the usage of GPUs in the clo”
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SEC filings for NVDA ↗ · Claim quote is verbatim from the 2023Q2 earnings call.